Europe's Data Centre Boom: Ready for Record Expansion

A research by CBRE Group reveals Europe is set for a record increase in new data centres as companies enhance their AI and cloud computing capabilities. The projected capacity of 937 MW in 2025 marks a significant rise from 2024, driven by market demands and government incentives.

According to recent research from CBRE Group, Europe is on track to see a record number of new data centres this year as businesses escalate their artificial intelligence and cloud computing operations. The demand for data centre capacity has surged, alongside the energy required to operate them, as companies increasingly utilize new technologies.

CBRE, a commercial real estate services and investment firm, reported that the European market could witness a data centre capacity of 937 megawatts become operational by 2025. This figure represents a substantial increase of 282MW or 43% from the 655MW capacity delivered in 2024. The expansion highlights the region’s growing technological infrastructure needs.

Kevin Restivo, CBRE's head of European data centre research, stated that the data centre construction boom will continue unabated, with factors like available power, suitable land, government incentives, and the ambitions of hyperscalers driving the growth. Major markets like Frankfurt, London, Amsterdam, Paris, and Dublin are set to account for over half of the new capacity. Despite challenges in sourcing power and land, CBRE anticipates double-digit supply growth in several secondary European markets by 2025.